There were times, not long ago, when prices of land and apartments went sky rocketing. Thanks to the Chennai floods and a tight liquidity situation, prices have dropped and settled down to quite realistic rates. Today, Chennai real estate has become a buyer’s market.
The real estate industry has an inventory between 45,000 and 60,000 units in the city and its suburbs. That is, almost no sales has been made in a year and a half. Understanding this trend, several builders are either heavily investing in marketing or giving away built spaces at rates that may come.
VGN builders had offered apartments in Guindy, the heart of Chennai at about Rs 6500 per sq ft against the price of Rs 10,000-Rs 13,000 per sq ft in the area. To bring in liquidity, developers are giving away some of their land parcels as plots. Buyers in the city have preferred plots. The multi-storeyed trend caught quite recently. Hiranandani, TVH, Olympia and Akshaya, a few of the reputed builders, have charted forth this path. Giving away as plots relieves the builder of constructing an apartment and encountering delays and price fluctuations.
Big ticket builders have moved to Chennai. A slew of buildings are coming up on the peripheries of Chennai.